Carnival said its earnings for the May quarter soared on improved revenue and a smaller-than-expected increase in costs. The world’s largest cruise operator by capacity raised its per-share earnings estimate. But for the current quarter, its earnings view fell short of analysts expectations. Shares fell 3.1% to $38.40.
The Swiss bank operated by HSBC Holdings PLC (HSBC, HSBA.LN, 0005.HK) is unloading more than 10 billion Swiss francs ($11.2 billion) in assets managed for wealthy clients as it repositions its business amid a global crackdown on tax evasion. The portfolio, which had $12.5 billion in assets under management at the end of last year, represented slightly more than 10% of the assets under management at HSBC’s Swiss bank. HSBC shares fell 0.6% to $51.33.
The Dow Jones industrial average ended the day down 119 points (0.7%). It was the biggest one-day percentage drop for the Dow in over a month. There was hope that the Dow would cross 17,000 for the first time this week. It’s now down at 16,818. The S&P 500 and the Nasdaq both fell as well.
A key measure of consumer sentiment rose to the highest level since January 2008. The Conference Board’s index of consumer confidence increased to 85.2 in May from 82.2 in April, suggesting that Americans remain optimistic about the economy. But it wasn’t enough to lift stocks.